Sentences with phrase «bond investors what»

Not exact matches

And so what the Fed is basically saying here is that because investors are using mutual funds to invest in bonds, instead of owning the bonds, there could be a problem if investors all want to leave at the same time.

What that means is that you are in an environment that is going to have further trouble in terms of investment returns that are in areas that are based on economic growth and areas that do relatively well like bonds... Broadly speaking, I think that investors should be looking for lower prices on most risk assets in these developed countries with the exception of Japan.»

But what really rattled bank investors was likely flagging bond yields.

What's more, to dampen risk, many investors will want a balanced portfolio of stocks and bonds; the classic mix is 60 % equities and 40 % fixed income.

A more reliable metric than the stock market of what investors expect in the future can be found in the bond market, which continued to surge Thursday.

So, how can a do - it - yourself investor find out what the duration of a bond is?

More from Fixed Income Strategies: 60/40 stock - bond weight rule needs to go on a crash diet Here are some hidden tax benefits for seniors, caregivers If you're a fixed - income investor, here's what to invest in... and what to avoid

With the bond and stock markets taking some losses on mixed signals from monetary policy makers, what are you most wary of as an investor this week?

A first observation is that bond trading is done between investors and dealers, and we know what a dealer is.

What should worry you is the absence of long - term fundamental investors who will buy bonds — intermediated by dealers, sure — when everyone else is selling.

Unlike mutual funds, individual bonds mature at par letting the investor know exactly what they will earn if the bond is held to maturity.

Further Reading: What Returns Can Investors Expect in Long - Term Treasuries Are We Witnessing a Melt - Up in Long - Term Bonds?

-LSB-...] Further Reading: A History of Bond Market Corrections What Returns Can Investors Expect in Long - Term Treasuries?

, then the next question is «what else do I need to know to become a savvy bond investor?»

As always, I urge investors to think hard about what role they want bonds to play in their portfolio — be it to mitigate stock volatility, diversify a portfolio or offer steady income potential — and make sure that their investment matches that goal.

A few people asked me to show similar charts on bonds, as many investors are wondering what the impact of a potential rise or sideways slog in rates could do to future returns in fixed income.

What we have really seen over the past several years, in terms of the appreciation of markets and the decline of interest rates based on what the Fed has been doing, is a result which has eliminated the possibility of investors in bonds and stocks to earn an adequate return relative to their expected liabilitWhat we have really seen over the past several years, in terms of the appreciation of markets and the decline of interest rates based on what the Fed has been doing, is a result which has eliminated the possibility of investors in bonds and stocks to earn an adequate return relative to their expected liabilitwhat the Fed has been doing, is a result which has eliminated the possibility of investors in bonds and stocks to earn an adequate return relative to their expected liabilities.

The important questions that investors need to ask are why do I own bonds, and what purpose are they serving in my portfolio?

After a relentless search for yield, investors have piled into dividend - yielding, defensive stocks, or what we call «bond market proxies,» making many such segments extremely expensive.

WHAT DOES THIS MEAN FOR BOND INVESTORS?

Their opinions of that creditworthiness — in other words, the issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's rating and also affects the yield the issuer must pay to entice investors.

A diversified portfolio may not help investors much this year When stocks and bonds fall This is what life without retirement savings looks like.

What I find most interesting is that, although investors are increasingly moving capital from actively - managed equity funds to ETFs, they still prefer actively - managed muni bond funds.

What about the argument that the equity - risk premium (the premium that investors demand over risk - free assets such as government bonds) has fallen close to zero because of greater economic stability?

To understand what type of return to expect, investors turn to the bond yield.

$ 7.6 billion worth of emerging market stocks and bonds were purchased by foreign investors in March — an «impressive» investment value according to the Institute of International Finance, considering what a volatile month it proved to be.

What's more, buying bonds in offshore centers lowers their administrative burden and makes investors less likely to be affected by capital controls than if they buy domestic securities.

Market participants are looking forward to getting their first major reading on earnings from the biggest technology - sector players in the coming days, but for now, investor sentiment has been able to overcome what would ordinarily be a troubling rise in long - term bond yields that could signal a steeper move higher for interest rates in the near future.

It may be somewhat useful to make comparisons to that period of time to see how certain interest rate sensitive asset classes such as junk bonds, REITs, dividend - paying stocks or bonds performed, but my guess is that particular environment doesn't do a great job of showing investors what a typical rising rate scenario would look like (assuming there is such a thing).

Although there will still be some amount of buying and selling in the portfolio during that time (for instance, to deal with things like new investors buying into the fund or selling a bond with a declining credit profile), it should be less than what would be experienced in a traditional bond mutual fund.

A clear understanding of what sorts of investments are consistent with improving the climate resilience of water assets will help bond investors quickly determine the environmental credentials of water - related green bonds.

The other, less discussed but potentially equally as important, is what investors should expect from bonds through the next equity bear market.

I know it's hard for most of you to believe that Gold and Silver will surpass their old January 1980 highs, but that is what a 20 + year generational bear market will do to a whole generation of investors who have grown up with falling real assets (Gold, Silver and commodities) and rising paper assets (stocks and bonds).

Yup, really depends on what you want to get out of your fixed income allocation, but I'm sure most investors aren't in bonds expecting to see huge drawdowns (nominally at least).

Richard Sylla, a professor of economics at New York University, says investors should choose what percentage of their portfolios they are normally comfortable allotting to stocks and bonds, and return to that balance on a regular basis, perhaps every year or six months.

Investing in a high - quality municipal bond fund may help you keep more of what you earn if you are an investor in a higher federal tax bracket or a resident of a high - tax state.

Investors who had the foresight (What does the Bond Market Know, May 7, 2014) and Bond Market Clues, May 14, 2014) to buy long duration bonds have earned many years» worth of returns in the last few months.

Smart investors prefer bonds when the market is volatile with no clear indication of what the future will bring in stock prices.

Not so popular last month was the iShares 20 + Year Treasury Bond ETF (TLT), which led outflows with net redemptions of $ 1.34 billion, as investors trim exposure to long - dated bonds ahead of what could be another rate hike before the year is over.

Just which investor groups have large bond holdings that could theoretically be sold as a potential funding source for stock purchases and what is the likelihood this «rotation» will occur?

What also is not too surprising is that with the initial volatility we've seen in bond prices since May, retail investors have hit the sell button with little hesitation.

This summer I am traveling around the globe, getting a closer look at foreign bond markets and what investors are doing in them.

As for what the above means for portfolios, investors may want to consider sticking with a few key themes: a preference for stocks over bonds, a healthy allocation to international equities given that U.S. stocks do look relatively expensive, and an opportunistic stance in fixed income.

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Obviously, there is a dichotomy of what was being told to us, the general public, bond investors and rating agencies and, what in fact, was the truth.»

What is now clear is that the government did not quite use the proceeds for the purpose that was stated in the prospectus and the basis on which investors bought the bond.

«There is no possibility no matter what happens that state taxpayers would be responsible... the investors who buy the bonds would pay for» any default.

«Speculative currency traders are unwinding in the wake of what the markets considered a not - well - thought - of bond sale — it's unsettling investors,» a commercial bank currency dealer told Reuters.

Two successful trials, Lo says, is what it would take to make the investment — a series of bonds issued by the fund — profitable and attractive to a broad range of investors.

An investor in such a bond may wish to know what yield will be realized if the bond is called at a particular call date, to determine whether the prepayment risk is worthwhile.